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What awaits the Iraqi markets in the coming period? .. Economists warn

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What awaits the Iraqi markets in the coming period? .. Economists warn

Reports & Analytics   Iraq   breaking   budget   Warnings   markets   The political situation Economists
2022-09-04 03:48
Shafaq News/
Economists expect a major recession and inflationary stagnation in the Iraqi markets during the coming period, in light of the continuing political crisis and the lack of approval of the country's financial budget.

The economic expert, Basem Antoine, says that

"the delay in approving the budget until the present time, without omens for the date of its issuance, indicates a recession and inflationary stagnation in the Iraqi markets."  And Antoine added, to Shafaq News Agency,

"As for the new investment projects, there is no hope for them, because Law No. 6 of 2019 for Financial Management does not allow spending for the following year on investments and creating job opportunities, so there will be a major depression if this problem is not addressed seriously and continuously.".

Economic analysts rule out the application of comprehensive economic reform in Iraq during the next short period at least.

And returning to its recent history, and it should also be based on dealing with businessmen from a financial perspective, not from a partisan and sectarian perspective,” according to the economist, Hammam al-Shama’.

Al-Shammaa indicates in his interview with Shafaq News Agency, that

"the next government - if it is formed - will be similar to its predecessors.

It cannot reduce corruption even by 10-20 percent.

Financial corruption has become available to everyone, so I do not expect much from the next government, The situation will continue as it is."  And he continues,

"But we do not forget that there is a financial abundance, and

this abundance goes to the corrupt and moves the speculative sectors (the auto sector, the real estate sector, the remittance sector through the currency buying and selling window in the Central Bank), and

these transfers reached during the past month one billion and 300 million dollars., which is a huge amount, and it has reached this level from about 100 to 120 million dollars per day, and now at a rate of 250 million dollars per day, that is, remittances have doubled.”

"Real estate prices have also risen, and these are indicators of corruption that has increased in depth, size and quality, after the passage of the Emergency Food Security Support Law, which is not subject to financial accounting controls, so

I expect the situation to get worse because the poor distribution of wealth causes the financial conditions of the Iraqi people to worsen," Al-Shamaa says..

As for the economic expert, Abdul Hassan Al-Shammari, he believes that

“Iraqi markets differ from the markets of other countries, as they take the political curve and consider it a major aspect, and

when politicians differ among themselves, it reflects negatively on the Iraqi markets, and

the circumstance that Iraq is currently going through makes the markets conflicting. And another,

prices rise and fall according to political news, and two days ago, the prices of materials rose from 75-100 percent, and yesterday they fell 100 percent."

Al-Shammari pointed out, in his speech to Shafaq News Agency, that

"the problem lies with the Iraqi merchants, as the merchant is the cause of the calamity in Iraq,

because he takes advantage of these opportunities in order to develop his materials and criticize, and

this is a big mistake committed by the merchant, while we see that in other countries companies reduce companies Owners of shops and markets own their materials by no less than 20 percent

The economic expert concludes by saying that

"Iraqi markets are on the verge of white and black days, according to the political conditions that drive them, and

if the Ministry of Commerce intervened in the markets, and the central markets and other public companies operating in Iraq remained, we would not have reached this situation, which is getting worse,

because The absence of a real policy and economic vision in Iraq, as well as its volatility and instability, which negatively affected prices in the Iraqi markets.

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